New Study Reveals High Growth Of e-Commerce In Nigeria

A new study by Terragon Group released for the second quarter of 2014, has revealed tremendous growth in the state of digital media and users’ online behavior in Nigeria over the past twelve months.

The report which was compiled after a recent survey from a pool of online participants across various locations in the country, showed heightened growth in the area of internet usage, social media participation and e-commerce, and the opportunities the trend presents for marketers.

The comparative study shows growth patterns from 2013 to 2014, with focus on mobile phone and internet usage, broadband penetration, Mobile Number Portability (MNP) and Mobile money.

Interesting to note were the insights presented for e-commerce which showed that there had been a 15 per cent increase in users’ purchases online from results in 2013.

By end of June 2014, 63 per cent of Nigerian internet users had bought at least one item online. 60 per cent of these buyers claimed to have used their mobile phones for these purchases.

Considered to have influenced this increase in e-commerce activities, are increase in internet penetration through mobile, increase in data bundle purchases and online activities such as search, social media interaction, downloads and emails, within the period.

Intelligence Lead, Terragon Group, Eniola Moronfolu, while highlighting on the findings explained that, “the increase in e-commerce activities is very encouraging for an environment such as ours. It was interesting to note that a huge number of these purchases were mobile driven, and that mobile is the first and major point of access for all internet activities. Hence, marketers need to start thinking first of mobile for online campaigns.”

Moronfolu said that relevant content should be of utmost priority to advertisers and marketers in a manner that the mobile audience feel a personal connection to the brands.

“Marketers need to take advantage of the growing usage of smartphones. They need to work with their partners and agencies to develop innovative marketing products and strategies that will keep the smartphone users engaged and loyal to them,” she said.

Other factors considered in the research include 86 per cent of respondents who claim to carry out research about an item before making a purchase, and 80 per cent who pointed at mobile as their major platform for research.

These numbers forecast a boom in the advertising and digital marketing industries will approach their marketing strategies over the next twelve months, especially as it pertains to mobile marketing.

Terragon Group, a new media business focused on Africa with strong competence across the new media ecosystem, carries out periodic research on internet usage across multiple platforms. Its research reports address the need for local, relevant data to help the digital sphere and streamline advertisers’ marketing efforts.